Recital (24)

To ensure predictability and legal certainty concerning the time to reach the DGS target level following the use of DGS funds or an increase of the amount of covered deposits, it is necessary to specify the replenishment period, not only in the event of a substantial reduction in the available financial means which results in the available financial means being less than two thirds of the target level, but also in the event of a smaller reduction which results in the available financial means falling below the target level but still being at more than two thirds of the target level. To avoid the procyclical effects of imposing a high financial burden on banks, the six-year replenishment period in the event of larger reductions should be maintained regardless of whether the cause of those reductions is DGS intervention or a substantial increase of the amount of covered deposits. In the event of smaller reductions, the replenishment period should be two years. However, if the reduction of the target level is very small in proportion to the cost of collecting the relevant contributions, the DGS should be able to extend that two-year period by one year.